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Release of Collateral Requirement Letter

Summary

Requirements letter from the U.S. Small Business Administration's COVID EIDL Servicing Center listing what borrowers and guarantors must provide for SBA to consider a full or partial Release of Collateral request on a COVID EIDL loan. It states that the letter is not a commitment by the SBA and that under most circumstances SBA may require full monetary consideration to approve such a release. It notes that a paydown for consideration is not a regular payment and does not automatically re-amortize monthly payments. General requirements begin with a letter detailing the request and the signed borrower authorization form.

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Full text

                                U.S. SMALL BUSINESS ADMINISTRATION
                                    COVID EIDL SERVICING CENTER
                                 COVID EIDL RELEASE OF COLLATERAL
                                        REQUEST REQUIREMENTS
ATTENTION:
This requirements letter is not a commitment by the SBA. Any commitment made by the SBA will be provided
separately in writing. Approval of any request may be conditioned on curing defaults and correcting any collateral
deficiencies or issues with loan documents.

Please be advised that under most circumstances, SBA may require full monetary consideration to approve a Release of
Collateral request. A ‘paydown’ for consideration is not a regular payment and regular monthly payments are not
automatically re-amortized; you must request and qualify for payment reduction.

All Borrowers and/or Guarantors are required to provide the following for all applicable sections. Additional
documentation may be required for thorough analysis. For the U.S. Small Business Administration (SBA) to consider a
Release of Collateral request, Full or Partial Release, the below documentation must be provided.

GENERAL REQUIREMENTS:

   1. A detailed letter from the borrower(s) or guarantor(s) (if any) detailing the request.
   2. Completed, signed and dated Consent to Verify Information and 3rd Party Authorization (Borrower Authorization)
      for all SBA borrower(s) and/or guarantor(s) (if any). (hyperlink to fillable PDF)
   3. Copy of the signed Agreement (Sale Agreement, Bill of Sale or Settlement Statement)
   4. Copies of the previous two years’ Federal Tax Returns for the business
   5. UCC Lien Search indicating the SBA’s lien position
   6. Title Report, if applicable
   7. Payoff letter(s) for any senior creditors, if applicable
   8. If the business is permanently closed, provide Dissolution Paperwork or Final Tax Returns.
   9. Proof of Insurance as required by the SBA Loan Authorization and Agreement

Please submit the above required information to the US Small Business Administration at the Covid EIDL Servicing
Center as shown below. Complete information packages may be E-Mailed to Covideidlservicing@SBA.gov .

Covid EIDL Servicing Center
E-mail: Covideidlservicing@SBA.gov
Box.com: Box.com - Upload files to Covid EIDL Servicing Center
Toll Free Phone: (833) 853-5638
Fax: (202) 481-5799

File and source

File
2025-05_CESC-Release-of-Collateral-4.2025-V1.pdf
Size
212,390 bytes
SHA-256
18841c24a405773d65243592fc2eadf12af5b72e5bdc56d8b2cfd73a4a73b0b5
Our copy
2025-05_CESC-Release-of-Collateral-4.2025-V1.pdf
Original
www.sba.gov
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